TSE:6753

Stock Analysis Report

Executive Summary

Sharp Corporation manufactures and sales telecommunication equipment, electric and electronic application equipment, and electronic components in Japan, the United States, Europe, China, and internationally.


Snowflake Analysis

Adequate balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Sharp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6753's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.1%

6753

-0.5%

JP Consumer Durables

-0.8%

JP Market


1 Year Return

3.0%

6753

21.5%

JP Consumer Durables

3.9%

JP Market

Return vs Industry: 6753 underperformed the JP Consumer Durables industry which returned 21.5% over the past year.

Return vs Market: 6753 matched the JP Market which returned 3.9% over the past year.


Shareholder returns

6753IndustryMarket
7 Day-6.1%-0.5%-0.8%
30 Day-15.2%-4.7%-3.1%
90 Day-17.8%3.8%-1.7%
1 Year4.7%3.0%24.2%21.5%6.6%3.9%
3 Year-57.2%-58.0%32.8%25.6%18.2%10.3%
5 Year-41.8%-42.9%41.5%30.1%26.6%13.4%

Price Volatility Vs. Market

How volatile is Sharp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sharp undervalued compared to its fair value and its price relative to the market?

13.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6753 (¥1399) is trading above our estimate of fair value (¥836.74)

Significantly Below Fair Value: 6753 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6753 is poor value based on its PE Ratio (13.6x) compared to the Consumer Durables industry average (10.7x).

PE vs Market: 6753 is good value based on its PE Ratio (13.6x) compared to the JP market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: 6753 is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: 6753 is overvalued based on its PB Ratio (2.7x) compared to the JP Consumer Durables industry average (0.8x).


Next Steps

Future Growth

How is Sharp forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6753's forecast earnings growth (4.6% per year) is above the savings rate (-0.09%).

Earnings vs Market: 6753's earnings (4.6% per year) are forecast to grow slower than the JP market (9.8% per year).

High Growth Earnings: 6753's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6753's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: 6753's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6753's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has Sharp performed over the past 5 years?

60.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6753 has high quality earnings.

Growing Profit Margin: 6753's current net profit margins (2.6%) are lower than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: 6753 has become profitable over the past 5 years, growing earnings by 60.8% per year.

Accelerating Growth: 6753's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6753 had negative earnings growth (-12.3%) over the past year, making it difficult to compare to the Consumer Durables industry average (0.8%).


Return on Equity

High ROE: 6753's Return on Equity (19.6%) is considered low.


Next Steps

Financial Health

How is Sharp's financial position?


Financial Position Analysis

Short Term Liabilities: 6753's short term assets (¥1,154.5B) exceed its short term liabilities (¥921.4B).

Long Term Liabilities: 6753's short term assets (¥1,154.5B) exceed its long term liabilities (¥673.3B).


Debt to Equity History and Analysis

Debt Level: 6753's debt to equity ratio (231.2%) is considered high.

Reducing Debt: 6753's debt to equity ratio has reduced from 391.5% to 231.2% over the past 5 years.


Balance Sheet

Inventory Level: 6753 has a high level of physical assets or inventory.

Debt Coverage by Assets: 6753's debt is covered by short term assets (assets are 1.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 6753 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 6753 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Sharp's current dividend yield, its reliability and sustainability?

1.43%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 26 2020Ex Dividend DateMar 30 2020Dividend Pay DateJun 05 202067 days from Ex DividendBuy in the next 33 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: 6753's dividend (1.43%) is higher than the bottom 25% of dividend payers in the JP market (1.39%).

High Dividend: 6753's dividend (1.43%) is low compared to the top 25% of dividend payers in the JP market (3.1%).


Stability and Growth of Payments

Stable Dividend: 6753's dividend payments have been volatile in the past 10 years.

Growing Dividend: 6753's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.4%), 6753's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Jeng-Wu Tai (66yo)

3.5yrs

Tenure

Mr. Jeng-Wu Tai has been the Chief Executive Officer and President of Sharp Corporation since August 16, 2016 and its Chairman since June 2018. Mr. Tai serves as President of Shenzhen Fujun Material Techno ...


Leadership Team

NamePositionTenureCompensationOwnership
Jeng-Wu Tai
Chairman3.5yrsno datano data
Satoshi Sakakibara
Exec. Officer0yrsno datano data
Fujikazu Nakayama
Sr. Exe. Managing Officer10.1yrsno datano data
Katsuaki Nomura
EVP, Head of Corp. Strategic Planning & Control Group0yrsno data0.00016% ¥1.4m
Mototaka Taneya
Executive Managing Officer1.1yrsno datano data
Masahiro Okitsu
Senior Executive Managing Officer and BU President of Smart Appliances & Solutions BU2.1yrsno datano data
Yoshihiro Hashimoto
Executive Managing Officer4.3yrsno datano data
Yoshihisa Ishida
Executive VP1.7yrsno datano data
Chien-Erh Wang
Executive Managing Officer0yrsno datano data
Michael Kelly
Senior Vice President of Sharp Manufacturing Company of America2.6yrsno datano data

3.1yrs

Average Tenure

Experienced Management: 6753's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeng-Wu Tai
Chairman3.5yrsno datano data
Katsuaki Nomura
EVP, Head of Corp. Strategic Planning & Control Group0yrsno data0.00016% ¥1.4m
Yoshihisa Ishida
Executive VP1.7yrsno datano data
Yasuo Himeiwa
Outside Director0yrsno datano data
Hsu-Tung Lu
Outside Director0yrsno datano data
Kwok-Fai Woo
Director1.1yrsno datano data
Chung-Cheng Lin
Director1.1yrsno datano data
Wei-Ming Chen
Director1.1yrsno datano data
Youichi Tsusue
Outside Director1.1yrsno datano data

1.1yrs

Average Tenure

Experienced Board: 6753's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.8%.


Top Shareholders

Company Information

Sharp Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sharp Corporation
  • Ticker: 6753
  • Exchange: TSE
  • Founded: 1912
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Market Cap: JP¥854.572b
  • Shares outstanding: 610.85m
  • Website: https://www.sharp-world.com

Number of Employees


Location

  • Sharp Corporation
  • 1 Takumi-cho
  • Sakai-ku
  • Sakai
  • Osaka
  • 590-8522
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHCA.YOTCPK (Pink Sheets LLC)UNSP ADR EA REP 0.25 ORD (POST REV SPLT)USUSDJan 1980
SRPBDB (Deutsche Boerse AG)UNSP ADR EA REP 0.25 ORD (POST REV SPLT)DEEURJan 1980
SHCA.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
6753TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
SRPDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

Sharp Corporation manufactures and sales telecommunication equipment, electric and electronic application equipment, and electronic components in Japan, the United States, Europe, China, and internationally. It operates through four segments: Smart Homes, Smart Business Solutions, Internet of Things (IoT) Electronics Devices, and Advance Display Systems. The Smart Homes segment offers mobile phones, electronic dictionaries, calculators, telephones, network control units, refrigerators, superheated steam ovens, microwave ovens, small cooking appliances, air conditioners, washing machines, vacuum cleaners, air purifiers, fans, dehumidifiers, humidifiers, electric heating equipment, plasma cluster ion generators, beauty equipment, solar cells, storage batteries, personal computers, etc. The Smart Business Solutions segment provides digital multi-function printers, information displays, POS systems, electronic cash registers, commercial projectors, options and consumables, and software. The IoT Electronics Devices segment offers camera modules, camera modules manufacturing facilities, sensor modules, proximity sensors, dust sensors, wafer foundry, CCD/CMOS sensors, semiconductor lasers, in-vehicle cameras, FA equipment, washing machines, etc. The Advance Display Systems segment provides LCD color televisions, Blu-ray Disc recorders, audio equipment, and display modules. The company was formerly known as Hayakawa Electric Industry Co., Ltd. and changed its name to Sharp Corporation in January 1970. Sharp Corporation was founded in 1912 and is headquartered in Sakai, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 15:25
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.